JK Cement has acquired a controlling stake in Acro Paints through a wholly owned subsidiary for Rs. 153 crore, according to a press statement from the company.
The acquisition has been carried out through JK Paints and Coatings which is the vehicle for the company’s expansion in the paints business.
Acro Paints is a leading manufacturer in northern India of architectural and high-performance paints and coatings. This acquisition is a step towards fast-tracking JK Cement’s entry into the paints business, expanding its product offerings and potentially foraying into new markets, as per the press statement.
“We are excited about this acquisition as we believe it will create adjacencies that will act as a key driver of our growth. We are pleased with continued association of Acro’s promoters – Mr. Charanjeet Gaind and Mr. Ashok Gaind for the next one year which will provide an opportunity for us to gain from their rich experience”, said Raghavpat Singhania, JK Cement’s managing director.
Charanjeet Gaind and Ashok Gaind will continue to remain on the board of Acro Paints Ltd. and will contribute towards a shared vision of the two companies, according to the company release.
JK Cement is the leading manufacturer of wall putty in India and this segment has a significant overlap with the paint industry.
The pan India distribution network of JK Cement comprises of 1,00,000 dealers, 75,000 influencers & 1,500 distributors.
JK Cement’s chief executive officer Madhavkrishna Singhania identified the acquisition as a step forward in a broader plan that will entail expansion across new areas for the cement maker.
“We have a focused launch plan to gradually deepen our presence in our strong markets over the next few years, and have identified specific geographic, product, and channel niches where we will dominate. We will leverage the strengths of both our brands as we expand our presence in the paint industry. We believe Acro is synergistic with our portfolio and will help us comprehensively address the fastest-growing paint and putty segment”, said Madhavkrishna Singhania.
Situated in Bhiwadi, Alwar District, in Delhi-NCR region, Acro Paints has two manufacturing facilities with a post-expansion capacity of 60,000 kilolitres in decorative and textured paints and 6,700 kilolitres in construction chemicals. The ongoing capacity expansion is expected to be completed by Q2 FY24.
